When you review salary survey data to find a match to an employer’s job description, sometimes you just can’t find the right match.

The salary survey job will have a higher or lower scope than the employer’s job. So, you make the decision to use a premium (plus X%) or a discount (minus X%).

The adjustment could be because of the scope of responsibilities or a niche/hot skill.

Here are a few guiding principles:

Primarily use 10% or 15% premiums or discounts.
At the maximum the adjustment should not exceed plus/minus 20%. If you want to exceed 20%, keep looking for a better match in the salary surveys. Or admit there isn’t a benchmark match and slot the job in the appropriate pay grade.
Document why you used an adjustment and include why you chose plus/minus X%. Put your initials and date in your notes.
Be consistent is substantially similar scenarios.
If more than one person is market pricing jobs discuss and document scenarios together to ensure consistency in the use of premiums/discounts.

What are your reasons for adjusting salary survey data with premiums and discounts?

Do you also have guiding principles you follow when doing this?

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